Otago Daily Times

Tesla would consider Aust production

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ADELAIDE: Electric car company Tesla would consider manufactur­ing vehicles in Australia, ‘‘if the opportunit­y arose’’, a Senate inquiry has been told.

Tesla senior manager Sam McLean said there were advantages to Australian production, including the availabili­ty of a skilled workforce and easy access to lithium and nickel, important to the manufactur­e of vehicle batteries.

But Mr McLean said there were also disadvanta­ges, including the size of the domestic market for electric cars, currently well under 1% of total sales.

‘‘In Australia, given the size of the market and how much it lags the rest of the world, a relatively small proportion of manufactur­ing would be absorbed by the domestic market,’’ he said.

‘‘If Australia wants to be more attractive to electric vehicle manufactur­ing, it will need a more mature and faster growing electric vehicle market.’’

The Senate inquiry, which held its first hearing in Adelaide yesterday, is examining the scope for the greater uptake of electric cars and other vehicles, including buses and shuttles, and for greater local involvemen­t in manufactur­ing and the component supply chain.

Chairman and independen­t senator Tim Storer has called for Australia to join the shift towards electric vehicles or face getting left behind in the global rush to embrace the new technology.

Mr McLean said the small size of the local electric vehicle market reflected the lack of leadership to drive demand.

‘‘Countries that have stronger uptake of electric vehicles generally have plans to achieve that,’’ he said.

He pointed to a bipartisan plan developed in New Zealand in 2016 to double the number of electric vehicles on the road every year.

In the UK, targets of 50% to 70% market penetratio­n by 2030 and 100% by 2040 had recently been set.

‘‘These countries have recognised the benefits that electric vehicles bring, not to manufactur­ers, but to their citizens, and they’ve laid out a clear plan to achieve it,’’ Mr McLean said.

He said a plan in Australia should set a clear sales targets for electric vehicles and include investment in electric vehicle infrastruc­ture. — AAP

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